- The descending triangle and the support-turned-resistance challenge immediate upside.
- 123.80 and 122.60 seem crucial supports on the downside.
While more than five-week-old descending triangle limits the EUR/JPY pair moves, its latest pullback from formation support clings to 124.00 during the early Asian session on Tuesday.
An upward sloping trend-line connecting late-March low to April month bottom, at 124.30, seems nearby resistance for the quote to clear ahead of rising to challenge the pattern’s upper-line at 124.70.
Given the bulls’ manage to cross 124.70 resistance, present month highs near 125.20 and 125.60/70 region could become tough nuts to break.
Meanwhile, a downside break of 123.80 support can fetch prices to a recent low near 123.35 and then to 61.8% Fibonacci expansion (FE) level of its May month moves, at 123.10.
It should also be noted that January 04 low near 122.60 could limit additional declines under 123.10.
EUR/JPY 4-Hour chart
Trend: Pullback expected
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